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2020 (11) TMI 49 - AT - Income TaxAddition on account of capital gains - addition u/s 50C - reference should have been made to the DVO - HELD THAT:- The assessee has not produced copy of the Purchase Deed of the property in question by father of the assessee despite it was a registered document. Therefore, cost of acquisition of asset is not proved by assessee. Further, no evidence have been produced by assessee to prove cost of the improvement in the property either by the assessee or by her father. No benefit under section 48 could be given to the assessee. Therefore, claim of assessee that assessee suffered capital loss on sale of the property in question cannot be accepted in any manner. Therefore, A.O. has rightly computed the capital gain on sale of transfer of capital asset. Addition made u/s 50C - Assessee has been making different statements at different stages in order to avoid payment of capital gains tax. Assessee has not objected to the stamp valuation under section 50C before A.O. when A.O. has given specific show cause notice to the assessee u/s 50C, A.O. was not obliged to make a reference to the DVO under section 50C. Such explanation was considered to be the highest prevailing market price and as such it was directed that reference should have been made to the DVO under section 50C. In the present case of the assessee, the assessee had made a specific statement before A.O. that since the land in question is an agricultural land or that assessee suffered capital loss, therefore, provisions of Section 50C are not applicable. The assessee has never pleaded such fact before the A.O. for making any reference to the DVO under section 50C therefore, this decision would not support the case of the assessee. In the absence of production of the Purchase Deed and source of construction made on the impugned property, would clearly show that the valuation report have been manipulated by assessee just to avoid payment of capital gains tax to the Revenue Department. The valuation report is of no reliance.- Decided against assessee.
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